The bill mandates the Washington State Office of the Insurance Commissioner to conduct a study on insurance coverage options for projects that develop permanently affordable homeownership units. The study aims to explore various insurance approaches that can help reduce costs associated with condominium construction defect liability while ensuring adequate access to insurance. It will involve consultations with nonprofit organizations, government entities, insurers, and representatives from the residential building construction industry. The findings, which must be reported to the legislature by December 31, 2026, will include an actuarial analysis of risk pools, recommendations for lowering insurance costs, and insights on the role of the commissioner and insurers in this context.

Additionally, the bill stipulates that if specific funding for the study is not provided by June 30, 2025, it will become null and void. The definition of "permanently affordable homeownership" is also clarified, emphasizing the role of nonprofit organizations or governmental entities in sponsoring these units and the conditions that must be met to maintain affordability for future low and moderate-income homebuyers. The section detailing the study will expire on December 31, 2027.